Jeffry Bartash
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Economics reporter at @MarketWatch. Writing from Washington on economics and a dash of politics. "Home" economist. Send comments to jeffry.bartash@dowjones.com
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Businesses are hiring at fastest pace in two years
Private-sector businesses have added an average of 84,000 new jobs a month in 2026. That's the fastest increase in hiring in more than two years. Hiring still isn't robust, however. Businesses added an average of 150,000 to 200,000 jobs a month in the five years before the 2020 pandemic. Still, the increase in hiring is more than enough to keep the unemployment rate low at 4.1%.
‘Rebound’ in government jobs pads U.S. employment gains in August
The 162,000 increase in new U.S. jobs in August was exaggerated by a reported 35,000 rise in government employment. In July, the Bureau of Labor Statistics said government employment fell by 50,000. The better way to assess the strength of the jobs report is to look at private-sector hiring: Businesses created a still- strong 127,000 new jobs in August, the biggest advance since April.
Unemployment rate has been falling, but not for the right reason
The U.S. unemployment rate fell to a one-year low in July to 4.1%, down from 4.4% earlier in the year. Good news, right? Not entirely. The rate has dropped largely because fewer people are looking for work. When fewer people look for jobs, they aren't counted in the unemployment rate. People typically stop looking when jobs are harder to find and the labor market isn't so great.
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